Company Report SAB ICB3533 BSC 01 12 2016

We recommend STRONG BUY for SAB with a target price of VND 168,653 (upside 53.32% compared to the listed price at VND 110,000). SAB will become important in Vietnam's Top 5 bluechips and have an impact on the whole listed Beer sector (BHN, WSB, BSP ...).

Vietnam is a prospective market of world beer industry. Production output of Vietnam in 2015 reached 4.67 trillion liters of beer, up 20.1% yoy, well ahead of country with 2nd high growth rates which is Belgium with 8.8% yoy growth. BSC believes that Vietnam will continue to be an attractive market due to (1) beer consumption per capita is moderate; (2) Vietnam population age is still in golden era and (3) The middle and the wealthy class continue to grow rapidly.